Business, 19.03.2021 01:00 emobaby335
Two alternative pieces of municipal solid waste bailing equipment are being considered for a project with a design life of 12 yr. Alternative 1 has a capital cost of $9600, zero salvage value, and a first-year annual operating cost of $1340. Alternative 2 has a capital cost of $11,400, zero salvage value, and a first-year annual operating cost of $820. Operating costs increase annually at $33.50 for Alternative 1 and $20.50 for Alternative 2 against an inflation rate of 3.2%. Because of manufacturer incentives, Alternative 1 can be financed at 5.2% instead of the usual rate of 6.5% applied to Alternative 2. Which alternative offers the least cost over the project term
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Advanced Placement (AP), 22.07.2021 21:40
